The Hindu Business Line : UTI offers micro pension scheme for Union Bank staff

UTI Mutual Fund will offer a micro-pension initiative to the staff members and customers of Union Bank of India called UTI's `Retirement Benefit Pension Fund.' It will enable them to get pension (periodical income) after 58.

The fund is an open-ended scheme and has been operational for the last 13 years. It invests minimum 60 - 100 per cent in debt and balance in equity.

Staffers of the Union Bank will have to contribute a minimum Rs 500 per month to the fund till the age of 55 years to claim post-retirement benefits.

Initially, around 1,000 members will join the scheme and will go up to 15,000 by the end of next year.

"The micro-pension initiative will help inculcate the savings habit to help members plan their future," said Mr U.K. Sinha, Chairman and Managing Director, UTI AMC.

He added that part of the FII inflows into Indian markets are through pension funds as they see value in Indian markets. Also, the pension schemes help to reduce the risk of short-term volatility in the market.

More Stories on : Mutual Funds | Pension Plans | Public Sector Banks

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